Chile’s Efforts to Combat Money Laundering and Terrorist Financing Under Scrutiny

A recent evaluation by the Financial Action Task Force (FATF) has assessed Chile’s progress in implementing anti-money laundering laws, highlighting both strengths and weaknesses in its efforts to combat money laundering and terrorist financing.

FATF Evaluation: Strengths and Weaknesses

The FATF report found that Chile is largely compliant with technical requirements, particularly in areas such as:

National cooperation and coordination
Confiscation and provisional measures
Financial institution secrecy laws

However, the evaluation also identified several areas where improvement is needed, including:

Assessing Risk and Applying a Risk-Based Approach

Chile was found to be partially compliant in this area. While measures have been implemented to identify and mitigate high-risk transactions, its system for identifying and prioritizing risks could be strengthened.

Chile’s implementation of targeted financial sanctions related to terrorism and terrorist financing was also deemed partially compliant. The country has designated several individuals and entities linked to terrorism, but its sanctions regime lacks a clear legal framework and adequate resources for enforcement.

Areas for Improvement

The report highlights several areas where Chile needs to improve, including:

Regulation and supervision of financial institutions
Powers of supervisors
International cooperation

Specifically, Chile was found to be non-compliant with regards to the exchange of information between financial intelligence units, and partially compliant in terms of mutual legal assistance.

Commitment to Combating Money Laundering and Terrorist Financing

Despite these challenges, Chile’s efforts to combat money laundering and terrorist financing are commendable. The country has made significant progress in implementing anti-money laundering laws and regulations, and its commitment to international cooperation is evident.

Next Steps

To further strengthen its efforts, Chile must address the areas identified for improvement by the FATF evaluation. This will require a sustained effort from government agencies, financial institutions, and other stakeholders to implement effective measures to prevent money laundering and terrorist financing.